Question

You want to buy a house in 9 years. The estimated cost is $175,800.00. You want to make a 20% down payment and closing costs are 7%. How much in totality do you need to save each month to reach your goal if you cover closing costs and the down payment?

Answer 1

Hey

Answer 2

Sorry nvm, I dont know.

Answer 3

I am not sure what a closing cost is and how you calculate it in

Answer 4

I am not sure how to do this, but someone answered this question https://answers.yahoo.com/question/index?qid=20130518105226AA8h9GX

Answer 5

No problem! Do you happen to know anything on this, http://openstudy.com/study#/updates/53618f2ce4b033b553831573

Answer 6

@jim_thompson5910

Answer 7

"You want to buy a house in 9 years", so basically you have 9*12 = 108 months to save

Answer 8

you aren't saving up for the entire cost of $175,800.00, just the 20% down payment + closing cost

Answer 9

what is 20% of $175,800.00

Answer 10

35,160

Answer 11

what is 7% of $175,800.00

Answer 12

12,306

Answer 13

add them up to get ???

Answer 14

47,466

Answer 15

so that is the answer?

Answer 16

hmm $12,306 sounds really high for closing costs now that I think that part over

Answer 17

let me look something up, one sec

Answer 18

Okay

Answer 19

ok, turns out that it's a percentage of the purchase price

Answer 20

7% is just a bit higher than avg (usually it's like 3-4 percent)

Answer 21

so yeah, you just add up the down payment and closing costs

Answer 22

Alright well thank you so much! Your a huge help (:

Answer 23

that will give you the total you have to pay when you go to buy the home

so you divide that by 108 months to figure out how much per month you need to save

Answer 24

okay so it would be 439.50

Answer 25

good